Feature story

Serbia and Montenegro are open for business

Subscribe to feature stories email alerts

Related links Serbia homepage

Miroljub Labus, Serbia's Deputy prime minister.

Investment Forum video presentation.

There’s an old banker’s saying that capital is as shy as a deer. And in the age of global competition it is harder than ever for governments to attract much needed finance. Investors enjoy the freedom of choice and want to be persuaded before they make a move and unleash their economic power.

A country with the best legal system, the most favourable investment climate, the most business friendly tax regime and the most efficient administration will not get the attention it deserves, if it misses out on presentation. Serbia and Montenegro went to great length at the EBRD’s Annual Meeting in Belgrade to make their case. The presentation on ‘Investing in Serbia and Montenegro’ resembled a meeting of the Council of Ministers, so many were the government present on the panel.

And for the uninitiated, there was plentiful to learn. Did you know that there is a country in the world, where you can register a business with a starting capital of exactly EUR1 (in words: one), the corporate tax rate is 9 per cent (in words: nine) and it takes no longer than 4 days (in words: four) to register a business? This fertile land for investment is named Montenegro.

The bigger neighbour, Serbia, is also stepping up its efforts to leave many difficult years behind. ‘The Time Is Now’ was the title of a powerful video presentation in which foreign investors from countries as diverse as Sweden, Austria and the United States shared their experiences of doing business in Serbia.

Not a single critical word was heard. Even the weather got lavish praise. A glimpse outside the huge Sava Centar, the venue for this year’s Annual Meeting, proved the point: Bright sunshine warmed the delegates’ hearts (and many a forehead).

EBRD President Jean Lemierre has been highly impressed by the progress recently achieved in Serbia and Montenegro. At the same time he has strongly encouraged stronger regional cooperation and cross-border trade between the two parts of this one country, and throughout the rest of the Balkan region. His reference to “some practices you know” not only earned knowing laughter from those at the presentation but also served as a timely reminder that there is still some way to go. But the message of this year’s Annual Meeting clearly is that the EBRD is ready to travel this road together with all those who believe in the future of a region whose beautiful landscape is home to one of Europe’s most rare deer.

Written by EBRD Press Officer Axel Reiserer.

23 May 2005